Depends entirely on what your expected use for the money is, even for a "young person." Also, as of the most recent fed meeting, rates are no longer continuously climbing (at least for now).

Further, investing borrowed money (as is being discussed here) is leveraged investing - which, while it can multiply returns, also multiplies risk and has to be accounted for in any reasonable asset strategy.

Well, I would never invest borrowed money, with the exception of putting it in a high yield savings account, but still, CDs just have no draw. So you can make 5.25% for a 5 year minimum investment period; well, I can make 4.5% in my savings account and have full liquidity. Don't forget the risk of putting your money into something where there are penalties for early withdrawl.

I guess my point is that the margin is so small that it is not worth the hassle/risk of having your money being locked up.

Also, you NEVER buy bonds when interest rates are going up as their price moves inversely of the interest rate. While the fed finally stopped, after 20 some odd rate hikes, there is no guarantee that they will not be back at it next meeting. Thus, I wouldn't even consider bonds right now.

Wait, you guys have cars? I've lived the impoverished life of a student for too long -- I've been living without a car for 4 years!

Me too but I've decided I'm leaving the broke undergraduate student life behind for a slightly less broke law student with a car life. And, I figure it will become a necessary evil come December when we start applying for summer jobs.

I really really hate driving. My first big gift to myself after I graduate, pass the bar, get a good job, pay off my student loans, buy a house and have extra disposable income (I really hope this happens!) is a car service. Big dream I know, but it will encourage me to do as well as I can to get as good a job as I can so that I can make this happen as soon as I can.